Economics 3 Marks Question

• The given data shows that China could arrest its annual population growth rate with the implementation of some stringent measure in late 1970’s like the introduction of one child norm. This step has been instrumental in controlling the growth of population in China. India stands virtually more than double to China at its annual population growth rate of 1.2% as compared to China’s annual population growth rate of 0.5% pa.
• The social dynamics of both the countries are similar to each other; sex ratio is low and biased in both the countries due to preference for male child. Whereas, India stands at 929 females per 1000 males, China is not far ahead at 941 females per 1000 males.

Reforms in Pakistan in 1988:

1. Pakistan followed a protectionist policy which combined tariff protection for manufacturing of consumer goods and controls on imports. The green revolution changed the agrarian structure and the 1970s and 1980s saw a thrust on denationalisation and privatisation. As debt piled up, the country's credit rating plummeted.
2. Meanwhile, the economy started to stagnate, suffering from the drop in remittances from the Middle-East. A growth rate of over 5% in the 1980s could not be sustained and the budget deficit increased steadily. Foreign exchange reserves were as low as 2 weeks of imports on many different occasions.
3. It was in 1988 that the first main loan package was signed, based on a need to combat a rapidly growing budget deficit and declining remittances from the Middle-East.

A Special Economic Zone (SEZ) is a geographical region that has economic laws different from a country's typical economic laws. Usually, the goal is to increase foreign investment.
Special Economic Zones attract investors since they offer high quality infrastructure facilities and support services. Besides allowing duty free import of capital goods and raw materials, attractive fiscal incentives and simpler customs, banking and other procedures are offered in such zones.

People's Republic of China is the governing authority of China. It followed a strategy of a socialistic pattern of industrialisation in 1949. Under this, heavy industries were first developed by the central authority and simultaneously consumption was reduced. It ws done to increase investment in industries. This was called 'Big Push Strategy'.

Being the country with the highest population, China enforced the one-child norm in 1979.

1. The low population growth of China can be attributed to this one factor.
2. Although originally implemented to target only fertility and population rates, the one-child policy also affected population composition, economic growth, resource consumption and migration flow throughout China.
3. Coupled with urbanisation and an increasingly open market economy, population control has instigated social changes as well family size has decreased, male-to-female ratio has increased, marriage and child-bearing ages have risen. This transition in China has produced and will continue to produce an unprecedented growth in China's older population.

China has performed better than India and Pakistan in all fields due to following reasons:

1. It adopted a strategy of growth with equity.
2. It had a well developed agricultural sector and commune system further developed it successfully.
3. It could control its production through one child norm.
4. It has larger proportion of people living in urban areas. It helps in bringing social development.
5. It has ensured job security and employment to all. (vi) Introduction of state owned enterprises and dual pricing proved successful for China.

The Great Leap Forward (GLF) took place in 1958. The Great Leap Forward planned to develop agriculture and industry. Mao believed that both had to grow to allow the other to grow. Industry could only prosper if the workforce was well-fed, while the agricultural workers needed industry to produce the modem tools needed for modernisation. To allow this, China was reformed into a series of communes in rural areas and backyard production method for industrialising the country.

Both rural and urban populations have economic and traditional incentives to prefer sons over daughters. Sons are preferred as they provide the primary financial support to the parents. A woman changes her surname to her husband's surname after marriage. For some families, one's daughter-in-law's name instead of a daughter's name would be added in the book of family tree.
Therefore, if a family had no son, the fortune and name of the family would have no legal heirs. The choice of small families also affects the people's views on the sex of their child.

The Great Proletarian Cultural Revolution was introduced in 1966 after the failure of the Great Leap Forward campaign, which was an attempt to modernise China's economy. The Great Leap Forward planned to develop agriculture and industry. People were encouraged to set up industries in the backyards.
A severe drought killed millions in China and Russia withdrew its professionals who had been sent to China to help in the industrialization process. This led to the Cultural Revolution under which the students and professionals were sent to work and learn from the countryside.

Pakistan has achieved better results with regard to:

1. Migration of workforce from agriculture to industry.
2. Migration of people from rural to urban areas
3. Access to improved water sources.
4. Number of people below poverty line.

1. China has successfully focused on Pro-poor reforms.
2. Agrarian reforms have been effectively carried out.
3. Export driven manufacturing has significantly grown, adding to the pace of GDP growth.
4. SEZ policy has proved to be a boon for FDI flow in India.

Area	India	China	Pakistan
Structual Reforms	India introduced reforms in 1991 whereby the role of public sector was expanded. In short of LPG liberalization, privatization and globalization.	It introduced reforms in 1978 and shifted focus to industrial development and reduced dependence on agriculture and service sector.	It initiated reforms in 1988. Service sector was growing but agriculture and industrial growth was slow. Arms industry did well. It was heavily dependent on agriculture.
Population Control	Frist country to announce population policy. Growth rate of population remained high at 1% p.a.	First time a country introduced such a strict population policy like 'one child norm'. Growth rate came down to less than 1% p.a.	Population policy is not adequate. Population growth rate is as high as 2.5% p.a.

• India: Mixed economy, very high fertility rate, large population, high density of population, growth due to service sector.
• China: One-child norm, low fertility rate, high degree of urbanization, mixed economy, large population, growth due to manufacturing sector.
• Pakistan: Mixed economy, very high fertility rate, growth due to service sector.

China is able to lead in almost all the human development indicators because of the establishment of infrastructure in the areas of education and health, land reforms, long existence of decentralised planning and existence of small enterprises which can be easily regulated.
Even before the reforms, basic health services were provided in villages and food was equitably distributed through the commune system.
Each reform was implemented on a small scale initially and then spread out on a larger scale. Laws and policies, such as the one-child norm, among others were strictly enforced.

In Pakistan, the reform process led to worsening of all economic indicators. The growth rate of GDP met with a drastic decline at 3.6 percent in the last decade from 6.3 percent in 1980-90. The proportion of the poor in 1960s was more than 40 percent which declined to 25 percent in 1980s but has re-emerged since then. The reasons for the slow growth and re-emergence of poverty in Pakistan's economy are:

1. Agricultural growth and availability of food is dependent on good harvest, subject to good climatic conditions, and not technological progress.
2. Weak world demand for its exports has contributed to Pakistan's high trade deficit. External imbalance has left Pakistan with a growing foreign debt burden which it is finding difficult to pay.

In the area of skilled manpower and research and development institutions, India is better placed than Pakistan.
Indian scientists excel in the areas of defence technology, space research, electronics and avionics, genetics, telecommunications etc. The number of PhDs produced by India in science and engineering every year (about 5000) is higher than the entire stock of PhDs in Pakistan. Issues of health facilities in general and infant mortality in particular are better addressed in India.